- Analytics
- News and Tools
- Market News
- GBP/USD: Unlikely to bounce higher even if New Chancellor restores confidence – SocGen
GBP/USD: Unlikely to bounce higher even if New Chancellor restores confidence – SocGen
New Chancellor Jeremy Hunt will give a statement on fiscal policy today. The aim is to deliver a clear message that stabilises the gilt market and hopefully restores confidence. In the view of Kit Juckes, Chief Global FX Strategist at Société Générale, gilt yields should fall and sterling volatility should melt away.
Sterling volatility should now fall back from crisis levels
“The Conservative Party is still in disarray, but if Mr Hunt gets his party’s backing for policies to tackle the crisis, market confidence will recover. That’s good for gilts, but I can’t see how it send sterling much higher than this.”
“EUR/GBP is back where it was at the end of August and the economic outlook is too bleak to suggest it will fall further.”
“GBP/USD remains a function of EUR/USD as much as anything happening in the UK, and while the euro is rangebound, neither the economic nor the geopolitical backdrop suggest it can bounce back above parity any time soon.
“All in all, expect both EUR/GBP and USD/GBP volatility to trend lower, but neither euro or sterling to stage a rebound against the dollar.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
